The Instigator
Ron-Paul
Pro (for)
Winning
33 Points
The Contender
cheesedingo1
Con (against)
Losing
0 Points

The Euro Should be Discontinued

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Post Voting Period
The voting period for this debate has ended.
after 5 votes the winner is...
Ron-Paul
Voting Style: Open Point System: 7 Point
Started: 11/12/2012 Category: Economics
Updated: 4 years ago Status: Post Voting Period
Viewed: 1,004 times Debate No: 27157
Debate Rounds (4)
Comments (0)
Votes (5)

 

Ron-Paul

Pro

Here's the challenge.

Full Resolution:

The Euro should be discontinued.

BoP is on me.

Definitions:

The Euro: "The official currency of the European Union's (EU) member states. The euro was introduced by the EU in to the financial community in 1999 and physical euro coins and paper notes were introduced in 2002. Euros are printed and managed by the European System of Central Banks (ESCB)"[1]

Should: "Must; ought"[2]

Discontinue: "To put an end to; stop; terminate."[3]

Rules:

1. The first round is for acceptance.
2. A forfeit or concession is not allowed.
3. No semantics, trolling, or lawyering.
4. Debate resolution, definitions, rules, and structure cannot be changed without asking in the comments before you post your round 1 argument. Debate resolution, definitions, rules, and structure cannot be changed from all moments after the debate has been formalized.

Voters, in the case of the breaking of any of these rules by either debater, all seven points in voting should be given to the other person.

Debate Structure:

Round 1: Acceptance
Round 2: Presenting all arguments (no rebuttals by pro)
Round 3: Refutation of opponent's arguments (A few new arguments may be brought up, but nothing out of the blue)
Round 4: Defending your original arguments and conclusion (no new arguments)

Sources:

[1]: http://www.investopedia.com...
[2]: http://dictionary.reference.com...
[3]: http://dictionary.reference.com...
cheesedingo1

Con

I agree to all terms, except I might troll just a itsy bitsy bit just to lighten the mood.

MY TERMS:

1. If either of us troll, the argument should not be regarded as part of the actual argument and just as a lightener of the mood.
2. Attacking your opponent personally is forbidden. Doing so is disrespectful. We should attack eachother's points on this debate, not eachother directly.
3. Have fun. YOU MUST ACCEPT THIS ONE.

Other than that, I have nothing I can think of at the moment.

Ron-Paul, EURO GOING DOWN! (Buh bum tch!)
Debate Round No. 1
Ron-Paul

Pro

I would like to thank cheesedingo1 for accepting this debate.

I am going to go through this debate in a cause and effect manner. In other words, I will first explain the problems with the Euro, then I will explain their effect on Europe.

I. Problems With the Euro

Each country has different economic situations that need individualized solutions. However, the Euro takes away the power for countries to dictate their own economic policies.

This is a problem for, for example, Spain and Germany, who are facing drastically different economic prospects.

I.i. Individualization

A single monetary union that serves a single interest to all of Europe is impossible. The Eurozone is a hodge-podge of different countries; it is a “patchwork of sovereign nations with distinct languages, cultures and histories that have more often been at war with each other than in search of common ground”. Each country has its own economic problems that require individualized solutions.[1]

This creates major problems when all countries must find a one-size-fits-all economic plan.

I will now go through some of the economic policies that the Euro centralizes.

I.ii. Interest Rates

The ability for Governments to set interest rates on their own is a vital tool to combat economic problems. Interest rates are monetary policies set by the Government to combat economic problems. Raising the interest rate slows inflation, while lowering the interest rate helps end a recession, and every country has a different interest rate to satisfy its economic needs. “By adopting a single currency, Euroland governments will lose control over a vital instrument for managing a national economy – the power to mint money and influence its value by adjusting interest rates."[1]

I.iii. Exchange Rates

Exchange rates are also very important to the well-being of an economy. Countries set rates depending on their economic conditions. If a country is experiencing a recession, it might start exporting more and importing less so as to create a trade surplus and raise GDP. As with interest rates, the Euro takes this vital power away from each country. "Monetary union has shackled together nations with vastly different economies, depriving them of an independent monetary policy that can help them through rough times. The interest rate and exchange rate that serve Germany also have to serve Spain, though that country has more than four times Germany’s joblessness."[2]

I.iv. Debt

Yet another bad side effect is the Government’s inability to control debt. Governments used to be able to control borrowing through economic indicators. However, as with everything else, the Euro takes that power away from countries. "Before the monetary union was put in place, large fiscal deficits generally led to higher interest rates or declining exchange rates. These market signals acted as an automatic warning for countries to reduce their borrowing. The monetary union eliminated those market signals and precluded the higher cost of funds that would otherwise have limited household borrowing. The result was that countries borrowed too much and banks loaned too much on overpriced housing. This caused “rapidly rising ratios of public and private debt to GDP."[3]

II. The Effects

This section will highlight how all of these failures of the Euro have affected Europe.

II.i. Inflation

Inflation in Europe had been going down since 1992, but in 1999, the year that exchange rates were fixed for legacy countries and when banks used the Euro as an electronic currency, inflation started to go back up. It went from a bottom of .75% at the beginning of 1999 to an average level of a little over 2% from 2000 until 2008. Since then, it has spiked and then decreased rapidly, down to actually -.5%, but inflation has been now steadily increasing since then, and the current inflation rate is 2.5%.[4]

II.ii. Unemployment

Unemployment skyrocketed by 5.6% in America and it soared 3% in the Euro-Area during the recession. However, America’s unemployment since then has dropped 2% while the Euro-Area’s has actually increased 1.5% over the same period. In fact, the EA-17 (countries officially recognized as having adopting the Euro) to EU-27 (countries who are members of the European Union) ratio has almost always been less than one since the Euro was begun. However, it is currently a little more than 1.07 – meaning that the EA-17’s unemployment rate is .8% above the EU-27’s.[5][6]

II.iii. Debt

The worst side effect of the Euro is the debt crisis that is crippling many countries throughout Europe. The average debt to GDP ratio for the EA-17 was around 74% in 2008, but is now around 83%. Even more shocking, "For all the countries of the Organization for Economic Co-Operation and Development, general government debt as a share of GDP having taken 15 years to go from 63 percent to 73 percent when the recession began in 2007, has now soared to about 105 percent."[7]

Conclusion

I will finish my argument with a hypothesis argument.

1) The Euro takes away the power of countries to dictate their own economic policy.

2) This causes problems as the wrong economic policy is put in place for most countries.

3) The correlation of this is clearly visible.

4) Therefore, the Euro should be discontinued.

Sources:

[1]: http://library.cqpress.com.ezproxy.vccs.edu...
[2]: http://www.nytimes.com...
[3]: http://www.nber.org...
[4]: http://www.tradingeconomics.com...
[5]: http://data.bls.gov...
[6]: http://epp.eurostat.ec.europa.eu...
[7]: http://finance.yahoo.com...
cheesedingo1

Con

cheesedingo1 forfeited this round.
Debate Round No. 2
Ron-Paul

Pro

Arguments extended.
cheesedingo1

Con

cheesedingo1 forfeited this round.
Debate Round No. 3
Ron-Paul

Pro

You know, cheesedingo here explicitly asked me to debate this with him, and when I challenge him and present my argument, he forfeits the debate. How rude.

Vote pro.
cheesedingo1

Con

My deepest apoligies to my opponent ron-paul. I did not mean to be rude by any means. I have been at a funeral the past week, and was unable to debate this topic. I am sorry, and I will try to debate this later some time to make up for this.

I will have to take a forfeit for this, and I am sorry again, my dear Ron-Paul.
Debate Round No. 4
No comments have been posted on this debate.
5 votes have been placed for this debate. Showing 1 through 5 records.
Vote Placed by Microsuck 4 years ago
Microsuck
Ron-Paulcheesedingo1Tied
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Total points awarded:60 
Reasons for voting decision: Conduct for the forfeit. Arguments and sources were because pro only delivered on those two points.
Vote Placed by miketheman1200 4 years ago
miketheman1200
Ron-Paulcheesedingo1Tied
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Total points awarded:70 
Reasons for voting decision: FF
Vote Placed by utahjoker 4 years ago
utahjoker
Ron-Paulcheesedingo1Tied
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Total points awarded:60 
Reasons for voting decision: FF
Vote Placed by Muted 4 years ago
Muted
Ron-Paulcheesedingo1Tied
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Total points awarded:70 
Reasons for voting decision: FF
Vote Placed by emj32 4 years ago
emj32
Ron-Paulcheesedingo1Tied
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Total points awarded:70 
Reasons for voting decision: FF, sorry to hear about the funeral cheese